Understanding Hedged
Scale Trading
"Profitable futures
trading depends on getting an edge on the market, taking advantage of the edge whenever
possible, and doing nothing when the edge is not evident. This book is all about teaching
you where there is an edge in the futures market and showing you how to take advantage of
it"
Scale trading provides the
edge and hedged scale trading sharpens that edge, allowing experienced traders to stay on
both sides of the market and use their edge most effectively. Understanding Hedged Scale
Trading covers everything traders need to know to work with the increased leverage
provided by scale trading while covering their backs against the inevitable moments when,
despite taking every precaution, they find fast-moving 'markets •moving against them
This high level trading book
is the only indepth treatment of hedged scale trading on the market. It provides an
easy-to-follow roadmap for combining the'increasingly popular.hedged scale trading niethod
with the judicious use of options to control downside risk. Author Thomas McCafferty a
veteran of nearly three decades in the futures industry who has seen everything and is
fazed by nothing shows you how to keep your wits about you in the heat of futures trading
battle as.he discusses
- The
mechanics of scale trading, and ther similarities and differences between traditional
hedged scale trading
- Techniques
for effectively offsetting the cost of commissions the unspoken yet omnipresent cost of
trading
- Strategies
for grabbing quick profits in the brief period of increased price volatility referred
to-as the -Red •Zone
- Methods
to reduce margin calls -and avoid your broker closing out your positions before their full
potential is realized||
- Proven
tactics for applying hedged scale trades to commodities groups including; grains, foods
and fibers, energies, metals, and entire, indexes
Undrestanding Hedged Scale
Trading is all about using your brain instead of your bucks to take advantage of market
turnarounds. Filled with examples of both successful and unsuccessful scale trades, it
provides strategies to minimize trading; risks as you maximize market leverage,
initiating. trades in falling markets and then waiting patiently for the inevitable laws
of supply and demand to drive the markets back up- and dramatically increase your
risk-adj usted returns
Thomas McCafferty has been
involved in the futures business for nearly three decades.A registerd stockbroker and
securities options principal, he is the former branch office manager at Securities
Corporation of Iowa and is currently chief operations officer at Market Wise Securities,
Inc. of Broomfield, Colorado. McCafferty is: the author of several books, including All
About Futures, All About Commodities, and Winning with Managed Future
248 pages